Milei scores another win as Lower House backs cut to gas subsidies

President Javier Mileis La Libertad Avanza party scored three victories in the Lower House on Wednesday, blocking an opposition bid to question Cabinet Chief Manuel Adorni who is under investigation for alleged illicit enrichment while advancing two bills aimed at cutting public spending. One of the bills would strip natural gas subsidies from regions added to the Cold Areas regime in 2021, just as winter approaches. The other seeks to repeal dozens of regulations deemed obsolete.  Both measures now head to the Senate for final approval. Although the opposition had called a session to question Adorni over alleged undeclared assets and high-value spending, the ruling party secured a quorum for its own agenda with backing from allied parties and provincial blocs. Cold Areas In Argentina, households in regions with particularly low winter temperatures receive natural gas subsidies to offset higher heating costs during the colder months. On Wednesday, the Lower House approved a government-backed bill to remove several regions added to the Cold Areas subsidy scheme in 2021 under the previous Peronist administration. The move is aimed at reducing fiscal spending as tax revenues decline and the government pushes to uphold Mileis zero-deficit target. The proposal also seeks to limit assistance to vulnerable households, meaning that, if approved by the Senate, eligibility for the subsidy would depend on income levels even in colder regions. However, even households that retain the subsidy would face higher gas bills, as the proposal limits the benefit to consumption costs and removes it from other charges included in the bill, such as distribution fees. The subsidies are currently financed through a 7.4% surcharge on the bills of all other natural gas users. Under the proposed reform, that surcharge would remain in place but be redirected to the national government, boosting state revenue. If enacted, the reform would strip subsidies from some three million households added to the scheme in 2021, which currently receive discounts of between 30% and 50% on their natural gas bills. What we want is for people who can pay for energy to do so and focus on the more vulnerable, energy secretary Mara Tettamanti said while defending the bill in a Congress commission meeting. Obsolete laws The ruling party also secured approval for its so-called dead leaves bill (Ley de Hojarasca). Drafted by Deregulation Minister Federico Sturzenegger, the initiative seeks to repeal or amend around 70 laws considered obsolete, redundant, or unenforceable due to conflicts with newer legislation or the Constitution. The bill forms part of President Javier Mileis broader push to shrink state bureaucracy and loosen regulations.  Although it was originally introduced in October 2024, the government refiled the initiative after lawmakers failed to debate it for more than a year.